The management of personal credit records in China's personal credit information system is very strict, which mainly restricts the lending relationship between individuals and financial institutions. Therefore, once a credit loan defaults, it will tarnish the personal credit record, and then it is quite troublesome for the borrower to apply for a credit card or a bank loan, or it will bear quite high interest, or even the bank will not approve it directly.

2. Late payment is high.

If the credit is loans overdue, the lender will first collect the loan, put the borrower on the overdue list, and at the same time, the interest rate will rise as an overdue fine. The intensity of late payment fees varies from lending institution to lending institution. For example, Citibank will charge 50% interest on the basis of the original interest rate, while Ping An Bank generally will not charge penalty interest unless it is maliciously overdue. However, small loan companies may charge more liquidated damages.

3. If the overdue amount exceeds a certain amount, legal procedures will be taken.

When the borrower of a credit loan resents overdue repayment or fails to repay it at all, the credit lending institution or bank will take legal proceedings against the borrower according to the credit loan contract signed at that time.

So remind everyone to have an accurate understanding of their repayment ability before handling the loan to avoid trouble. Once the credit loan is repaid on time, it is necessary to avoid affecting the personal credit record. Bad credit record is the loss of intangible assets, which can't be compensated by money.